Valero Energy Intrinsic Stock Value – Wealth Management Firm Boosts Stake in Valero Energy by 4.5% in Third Quarter
October 30, 2024
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Valero Energy ($NYSE:VLO) Co. is a multinational energy company that operates in the oil and gas industry. The company’s stock is publicly traded on the New York Stock Exchange under the ticker symbol VLO. Wealth Enhancement Advisory Services LLC, a wealth management firm with headquarters in Minnesota, recently revealed through their 13F filing that they have increased their stake in Valero Energy by 4.5% during the third quarter. This means that the firm now owns a larger portion of Valero Energy’s shares compared to the previous quarter. This filing provides valuable insights into the stock holdings and investment strategies of large institutions, such as Wealth Enhancement Advisory Services LLC. The increase in Wealth Enhancement Advisory Services LLC’s stake in Valero Energy indicates their confidence in the company’s performance and potential for growth.
Valero Energy has been performing well in recent years, with strong financial results and steady growth. The company’s diversified operations and strategic investments have helped it weather market fluctuations and maintain a strong competitive position in the industry. The increase in holdings by Wealth Enhancement Advisory Services LLC further reinforces the company’s positive outlook. In conclusion, the 4.5% increase in Wealth Enhancement Advisory Services LLC’s stake in Valero Energy highlights the company’s solid performance and attractiveness as an investment opportunity. As one of the leading players in the energy industry, Valero Energy continues to attract the interest of major institutional investors, boosting investor confidence and contributing to the company’s growth trajectory.
Analysis – Valero Energy Intrinsic Stock Value
During our analysis of VALERO ENERGY, we carefully examined the company’s fundamentals to determine its intrinsic value. Our proprietary Valuation Line showed that the true value of a VALERO ENERGY share is approximately $105.6. However, the current market price for VALERO ENERGY stock is $132.4, indicating an overvaluation of 25.4%. We take into consideration various factors such as financial performance, industry trends, and market conditions when calculating our proprietary Valuation Line. We believe that this method provides a more accurate representation of a company’s true value compared to just looking at its market price. Based on our analysis, we found that VALERO ENERGY is currently overvalued. This could be due to market speculation, investor sentiment, or other external factors. As a result, we would caution investors against buying VALERO ENERGY stock at its current price. It’s important for investors to carefully consider a company’s fundamentals and valuation before making any investment decisions. While VALERO ENERGY may be a strong company with a solid track record, it’s important to not overpay for a stock as it can negatively impact returns in the long run. In conclusion, our analysis has shown that VALERO ENERGY is currently overvalued by 25.4%. We will continue to monitor the company’s performance and adjust our valuation accordingly. We suggest that investors also regularly review their portfolios and make informed decisions based on a company’s fundamentals and valuation rather than just its market price. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Valero Energy. More…
| Total Revenues | Net Income | Net Margin |
| 144.77k | 8.84k | 6.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Valero Energy. More…
| Operations | Investing | Financing |
| 12.09k | -2.81k | -8.85k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Valero Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 63.17k | 35.12k | 77.39 |
Key Ratios Snapshot
Some of the financial key ratios for Valero Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 30.7% | 59.9% | 8.5% |
| FCF Margin | ROE | ROA |
| 7.6% | 29.5% | 12.2% |
Peers
Valero Energy Corp is one of the largest refiners and marketers of petroleum products in the United States. Its competitors include Marathon Petroleum Corp, Phillips 66, Delek US Holdings Inc.
– Marathon Petroleum Corp ($NYSE:MPC)
As of 2022, Marathon Petroleum Corporation has a market capitalization of 54.29 billion dollars and a return on equity of 32.4%. The company is engaged in the refining, marketing, and transportation of petroleum products and crude oil, as well as the production and marketing of natural gas and natural gas liquids. Marathon Petroleum is the largest refiner in the United States, with operations in 19 states and the District of Columbia. The company also has a significant presence in Canada, Europe, and Asia.
– Phillips 66 ($NYSE:PSX)
Phillips 66 has a market cap of $47.12 billion as of 2022 and a return on equity of 20.59%. The company is an energy manufacturing and logistics company with operations in the United States, Europe, and Asia. Phillips 66 is engaged in the refining, marketing, and transportation of crude oil, petroleum products, and natural gas. The company also has a chemicals business.
– Delek US Holdings Inc ($NYSE:DK)
Delek US Holdings Inc is a diversified downstream energy company with operations in refining, logistics, and retail. The company owns and operates four refineries with a combined capacity of approximately 620,000 barrels per day in Tyler, Texas; El Dorado, Arkansas; Big Spring, Texas; and Krotz Springs, Louisiana. It also owns and operates a fleet of approximately 4,000 railcars and a network of approximately 30 crude oil and refined product truck terminals. The company’s retail segment consists of approximately 350 company-operated convenience stores and fuel centers.
Summary
Wealth Enhancement Advisory Services LLC has recently increased its holdings in Valero Energy Co. by 4.5% in the third quarter. This shows confidence in the company’s potential for growth and profitability. It is likely that the firm conducted a thorough analysis of Valero Energy’s financials and market trends before making this investment decision.
This is an encouraging sign for other investors to consider adding Valero Energy to their portfolios as well. As an energy company, Valero Energy has been able to maintain a strong position in the market, making it a potentially lucrative investment option.
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